Indian equity markets are expected to open on a flat to mildly positive note today. The broader fundamental backdrop remains supportive, with FII flows turning decisively positive this month, lending strength to overall sentiment. Domestic institutional investors continue to accumulate on declines, providing a strong underlying cushion even during low-activity sessions. The rupee remains stable, adding macro comfort and limiting currency-driven volatility. However, markets are largely in a wait-and-watch mode ahead of key macro cues, particularly the January CPI (new series) data, where any material deviation could influence expectations around future rate cuts. In the absence of fresh triggers, the near-term trend is likely to remain range-bound, with consolidation around current levels.  

Nifty 50

Nifty 50 continues to trade within a broader rectangle range of 25,500–26,300, with current price action holding in the upper half of this band. Immediate support is placed near 25,800, aligning with recent demand zones, while stronger support lies at 25,550–25,600, backed by the confluence of the 20-day and 100-day EMAs along with notable put writing. On the upside, 26,000 remains a key psychological resistance and a major call-writing zone. Momentum indicators point to a neutral-to-mildly bullish bias, with RSI near 58 and MACD in positive territory, though the contracting histogram indicates some cooling in momentum. As long as Nifty sustains above 25,800, the broader structure remains constructive. A decisive breakout and close above 26,000 could open the path toward 26,200–26,400. Conversely, a close below 25,800 may lead to further consolidation or a corrective move toward the 25,700–25,600 region.

Bank Nifty

Bank Nifty continues to face persistent supply in the 60,800–61,000 zone, with recent upside attempts meeting selling pressure. Immediate support is seen near 60,500, and as long as this level holds, the near-term bias remains mildly positive. A stronger demand base is placed around 60,000–60,200, coinciding with the psychological mark and prior consolidation area.  The index saw profit booking near 60,800 in the previous session, resulting in relative underperformance. A sustained breakout above 60,800 would reaffirm the bullish setup and open room for a move toward fresh highs. However, a decisive break below 60,000 could push the index into a consolidation phase or a mild corrective move toward 59,800. Momentum indicators remain supportive, with RSI around 60 and MACD in bullish territory, though lack of volume and conviction suggests momentum is gradually cooling. Overall, Bank Nifty is likely to remain range-bound near current levels unless a clear breakout emerges.